you have signed a two-year lease on a building in which you are planning to open a day care center. you have no choice about how much money you spend on rent for the next two years, because you are already committed to this agreement. this is an example of:

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10-11-2022
Business

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you have signed a two-year lease on a building in which you are planning to open a day care center. you have no choice about how much money you spend on rent for the next two years, because you are already committed to this agreement. this is an example of:

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SidHussain SidHussain · Answer 1 · 2022-11-14T11:49:01+01:00

A scenario in which we no longer care about the rent for the next two years because of having signed a two-year lease on a building is an example of fixed-input.

In the field of business, a fixed input can be described as a factor that cannot be changed as any cost in relation to a particular business.

In the scenario above, we have created a fixed input by signing a two-year lease. This means that we will have to pay the rent for two years due to the commitment of the fixed input. The fixed input cannot be changed according to the business principles. Hence, the commitment or agreement mentioned in the above question is an example of a fixed input.

To learn more about fixed-input, click here:

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